It takes a great deal of bravery to start a new business venture. It also takes money. As an entrepreneur, you are looking for any way you can possibly save money on your startup. One place that start ups can find relief is with tax deductions. When new businesses aren’t aware of all the deductions that they can take advantage of, it puts them at a disadvantage financially. This is one of the reasons why an accountant can be valuable. Mark Dicus & Company is here to talk about tax deductions that all new start ups should be fully aware of to help them reach success.
Tax Deductions for Start Ups
We would like to point out some of the tax deductions that all start ups should know about when just getting going. Every dollar matters, especially in the beginning.
– Start Up & Organizational Costs: There are some costs that are going to be part of getting up and running. Things like marketing, advertising, and incorporation expenses all fall into this category. The IRS allows a new business to deduct up to $5,000 in startup costs and $5,000 in organizational costs during that first year.
– Home Office Deduction: There are many small businesses that run their business primarily out of their home. If you have a home office that is dedicated to running your fresh business, you can deduct it depending on the percentage of your home that is your office. You just have to make sure the space is used only for the office and nothing else.
– Equipment & Supplies: Surely, there is necessary equipment that you had to purchase to run your business. This might include items like computers, printers, furniture and more. The IRS allows you to deduct the cost of those supplies and equipment from your taxable income during the year they were purchased.
– Employees Salaries & Benefits: Some startups don’t have any employees right out the gate, but if you do, their wages, health benefits, and retirement contributions are deductible.
– Business Meals & Entertainment: You can’t deduct the entire dollar amount that you spend on business meals and entertainment, but you can deduct 50% of it. If these meals and entertainment are filled with business conversations and or are directly related to business, they are deductible.
– Travel Expenses: You might have some travel that is involved in getting your startup up and running. All flights, hotels, rental cars, food, and more are deductible as long as they are necessary for business.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you are just getting your startup going, you can turn to Mark Dicus & Company to help you sort out all the deductions that you are going to be able to take advantage of. We will help you with your record keeping as well so that you have the documentation needed to save some money on your taxes. Call us today!